You know the credibility that I think the price targets on shares that provide the analysts, especially if they are investment banks.
Today I'm going to leave a reflection on the recommendations in other areas typically perform.
As you probably know most of UDS have been fashionable since the CDS (Credit default swap) insurance to cover default risk of the debt of third parties.
Well, some houses (investment banks) are recommending buying these lately insurance to cover the possible risk of default on the debt of the English State. It so happens that right now the difference is the English debt to other countries (eg Germany) has increased and consequently the cost of insurance has risen.
My question is:
Do not be that they are growing fears in order to sell insurance?.
This is not to ignore the reality of the situation, the deficit situation by crossing SPAIN and the difficulty to reverse the situation to more reasonable levels. which will mean increasing debt and a corresponding distrust. But to recognize the situation evidence supporting the need to hire CDS to hedge the risk at current prices is a stretch. Therefore I do not doubt that sooner or later the situation had calmed down and a few filling the bag with a few Euros.
blog readers know (according to comments published at the time) I do not recommend being overweight in R. FIXED in general, but I get the feeling that we must be prudent and there is enough noise in the market looking for the whole business of a few.
you own.
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